Since nearly three decades of civil war ended in 2002, Angola has been relying heavily on China – its key financier of post-war infrastructure – to help the southern African country’s government deliver on its promise of a million new homes.
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When the West was unwilling to finance its projects, Luanda secured loans from Chinese state banks under the so-called Angolan model, using its oil as collateral.
Angola became the largest recipient of Chinese financing in Africa, attracting 270 loans worth US$46 billion between 2000 and 2023 – a quarter of all loans advanced to African countries during that period.
China also funded construction of major cities, like the US$3.5 billion Nova Cidade de Kilamba that was financed through an oil-for-infrastructure deal and built by Chinese companies.
The city, about 30km (18.6 miles) south of Luanda, was completed in 2012 as part of Angola’s post-civil war national reconstruction but its initial high prices and lack of credit made it unreachable for many.
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The high costs, combined with the development’s location and lack of basic services, kept occupancy low until the Angolan government intervened, dropping prices and introducing long-term mortgages backed by the state oil company Sonangol.